Processes & Procedures

Processes & Procedures

Moto, Initiative, Efforts of Bank Behind Self Redevelopment

  • Housing Societies prior to era of builders are formed, developed & erected by members by purchasing plots, appointing contractors & experts & arranging finance
  • Mumbai Bank, being Apex & parent bank for co-operatives in Mumbai, has introduced a Self Redevelopment Policy in 2011 & revised in Aug 2017 with a view to give maximum benefits of redevelopment to members of co operative housing society
  • The policy is to create a social impact in the city coupled with growth of business of Mumbai Bank
  • Bank is taking special efforts by appealing Government/MHADA to introduce One Window concept for obtaining various permissions/NOC’s under one roof
  • Bank is taking special efforts to introduce / insert special sections for self redevelopment in RERA act
  • This presentation is to discuss the ideology of the product
  • MHADA societies will get NOC for IOD from MHADA before paying premium on the basis of Comfort Letter from the bank
Strength

Self Redevelopment

Self Icon
Redevelopment
  • Demolition of old structure and construction of new structure with better facilities, dimensions and amenities
Redevelopment
Self Redevelopment
  • Redevelopment from resources of existing members with the support of financing agencies and professionals
  • Redevelopment with better accountability and transparency
  • Redevelopment without interference of any developer

Advantages of Self-Redevelopment

Flat
  • Profits from the project shared among the existing members of the society
  • More profits means extra corpus to be shared in the society
  • Extra corpus means less burden of maintenance cost on existing members
  • Existing members shall have more say in planning and shall be benefitted with more areas in certain cases
  • Customization leads to better planning & utilization of space & dimensions
  • Risk pertaining to Developer dependability is eliminated
  • Existing members can get professional help in much organized way which helps completion of project in time and saves cost too

Self Development v/s Redevelopment

  • Risk of Developer not performing gets eliminated

  • Profits of the project are shared within existing members

  • More corpus to existing members with professional help

  • Planning and Design as per existing members

  • Better customization in design and space

  • Transparency with the help of professional help can lead to timely completion of project

  • Possession is solely dependent of Developers performance

  • Profits of the project are retained by Developer

  • Limited corpus to be distributed by developer to existing members

  • Planning and design as per Developers view

  • Customization is limited and only as per developers preference

  • Less transparency, that leads to delay in completion of project and more hardships to members

Why Mumbai Bank?

  • Apex financial entity in co-op credit structure
  • Inherent capability of the Management towards resolving procedural delays
  • Wide network of branches throughout Mumbai to reach out to interested prospects
  • First bank to offer specially designed solutions for self redevelopment projects
  • Providing proper framework, infrastructure & support system for societies to carry out the project with minimal hassles

Mumbai Bank – Self Redevelopment Policy

Policy
  • Loan approval limit 85 % of project cost or Rs. 50.00 Crores or more as per exposure norms of the bank
  • Policy covers every aspect required for redevelopment e.g. TDR cost, experts fees, construction cost, shifting charges, rent , premiums & fees etc.
  • At 12.5% p.a. interest with maximum cap of 7 years tenure with 2 years moratorium
  • 100% consent from all members
  • Conveyance/Deemed conveyance, property card, Index II Project will be monitored by Bank PMC & CA
  • Escrow Mechanism : Outflow & Inflow will be routed through these accounts.
  • Society plot & projected building will be mortgage to bank
Eligibility Criteria
  • Scheme is for member Co-Op housing societies
  • Society should have A & B Audit class
  • Society should not be defaulter of any bank or government
  • Property card, Index II & conveyance should be on societies name
  • 100% consent of all members required for self redevelopment
  • Title should be clear & Marketable
Various Documents / Permissions Required
  • various documents / permissions required to obtain Commencement Certificate from MCGM. There are various stages between Commencement Certificate and Occupation Certificate which can be broadly named as:
  • Pre design (Proposal stage)
  • Statutory approval – IOD – C.C. stage
  • Commencement Certificate above plinth
  • Occupation / Completion stage
Pre Design (Proposal stage)
  • Deemed Conveyance – Property must be transferred in the name of the Co – operative housing society including PR card.
  • PR card in nos. and in words.
  • Undertaking of preferably all members (minimum 70%) giving consent for redevelopment.
  • Duly notarized and registered MOM of redevelopment proposal by Society.
  • Appointment of PMC / Architect to advise and prepare preliminary proposal.
  • Proposal duly prepared with respect to prevailing DCR & Government norms.
  • DP remarks and related road and survey remarks (MCGM).
Statutory approval – IOD – C.C. stage
  • Preparation of plans and complete detailed proposal and submission of the same with relevant documents by the Society i.e Society’s Architect.
  • NOC from Chief Fire Officer
  • NOC from Electromechanical department
  • NOC from Traffic
  • NOC from Superintendent of Garden.
  • NOC from Pest Control.
  • NOC from Assessment department
  • NOC from Sewage Department
  • NOC from Storm water drain department#
  • NOC from Hydraulic – Water supply department.
  • NOC from Ward Officer – Estate
  • NOC from Road Department
  • NOC from MTNL
  • NOC / Remarks for concessions from Commissioner / Chief Engineer – DP
  • NOC from High rise Committee (if building is above 70 mtrs.) In addition to the above, following NOC’s have to be procured from Government departments:
  • NOC from Electric supply authority.
  • NOC from Civil Aviation department.
  • NOC from Environment department.
Occupation / Completion stage
  • In addition to the same Rain Water Harvesting and Lift Inspector’s NOC is required.
  • Along with the proposal, various charges / deposits etc. are payable towards scrutiny fee, premium for additional FSI etc. which is listed as below:
  • Scrutiny fee
  • Development charges
  • Additional basement area premium
  • Fungible FSI premium
  • Staircase and Lift Lobby premium
  • Premium for additional 33% area
  • Capitation fee towards Fire NOC
Procedure for Loan Sanctioning
  • Submission of proposal by the society with all required documents (mentioned in policy) to the bank
  • After initial scrutiny by bank, proposal is send to Banks PMC, CA & Solicitor for technical financial viability
  • After receiving opinion from experts of bank, appraisal note is put up for sanction to banks BOD
  • After approval the same is communicated to society
  • After complitation of documentation work, opening loan / escrow account at branch level
  • Amount is disburse as per society’s demand on the basis of remarks from banks PMC
  • Installment is work out for repayment as per disbursement & repayment period

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